HANCOCK COUNTY — United Way of Central Indiana’s decision to rely more on a grant-based system of funding agencies will be a big change to the entities it has supported.
Currently, United Way annually evaluates its partner agencies and assigns a score that determines the funding amount the nonprofit will receive, according to a recent story in the Indianapolis Business Journal. Fifty percent of the score is considered the base allocation that is pre-determined by the board of directors; 30 percent is based on how well the agency’s work aligns with United Way’s goals; and 20 percent is based on a performance review.
But the new funding model, once fully implemented, will not follow that method. Instead, United Way will accredit organizations, which can then apply annually for what United Way is calling impact-initiative funding that is based on its goal of addressing poverty.
Preference in grant funding will be given to agencies whose programs positively affect more than one generation, said Kiko Suarez, chief community impact officer of United Way of Central. He suggested agencies that have typically worked with one age group in the past could partner with others to improve their chances of landing funding.
In addition, Suarez said UWCI will start measuring the impact of programs supported by United Way and will only continue programs that deliver results.
“We want to know, are we changing the trend?” he said.
The funding model will be phased in starting next year, when United Way will use a sliding scale that takes into account how dependent an organization is on United Way funding. Groups with budgets that rely more heavily on United Way will see smaller reductions to help ease the transition.
All groups will then be able to apply for additional money through the impact funds.
